Official: N Stream-2 to change layout if Denmark bans building

ST. PETERSBURG, Oct 6 (PRIME) -- Nord Stream 2 AG, the operator of Russian gas pipeline project Nord Stream-2, has elaborated an alternative route of the pipeline if Denmark forbids building it in its territorial waters, Technical Director Sergei Serdyukov told reporters on Friday.

“There will be an alternative. It has been elaborated,” Serdyukov said. He said that the pipeline length will remain almost unchanged in case the alternative construction route is used.

Denmark is considering amendments to its environment legislation and can prohibit the construction of Nord Stream-2.

The Nord Stream-2 project envisages construction of two lines of a natural gas pipeline with an annual capacity of up to 55 billion cubic meters, running from the Russian shore to Germany under the Baltic Sea. Gazprom plans to implement the project together with Uniper, Wintershall, Royal Dutch Shell, Austria’s OMV, and France’s Engie.

Serdyukov said that the contractors are sure that they will participate in the project despite the new U.S. sanctions. “You know, counter-sanctions exist. Besides, they are developing the shelf and undersea pipelines as well … The contractors have already said they are unafraid. The main, base contractors have already said that they feel no fear. They are demonstrating certainty that they will win over them.”

In August, U.S. President Donald Trump signed a bill introducing additional sanctions against Russia among several other states. The bill prohibits companies to invest more than U.S. $1 million in a single payment or more than $5 million during the course of a year in construction of Russian export pipelines, as well as provision of goods, services, technologies and information support for the construction.

Nord Stream 2 AG and European partners earlier signed a financing agreement, under which the companies are to provide up to 950 million euros each before 2019 at 6% annually. At the same time, Nord Stream-2 planned to attract 70% under a project financing plan.

Serdyukov also said thatacquisition of Uniper by Finland’s Fortum is to become a positive factor for Nord Stream-2. “A Finnish owner is more comfortable,” he said, adding that Finland’s companies tend to like the Russian market.

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